Andrew Has the Following Portfolio of Assets What Is the Beta of Andrew's Portfolio?
A) 0

question 49

Multiple Choice

Andrew has the following portfolio of assets. $$\begin{array} { l c l } & \text { Proportion of } & \\\text { Stock } & \text { Portfolio } & \text { Beta } \\\hline \text { ABC } & \$ 8.000 & 1.10 \\\text { DEF } & \$ 11,000 & .95 \\\text { GHI } & \$ 6,000 & 1.05 \\\hline\end{array}$$ What is the beta of Andrew's portfolio?

• A) 0.98
• B) 1.00
• C) 1.02
• D) 1.03

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Definitions:

Modeling

A learning method in which individuals learn by observing and imitating the behaviors of others.

Observation

The active acquisition of information from a primary source using the senses or specialized scientific equipment.

Imitation

The action of copying or mimicking the behaviors, actions, or characteristics of others.

Strain Theory

Holds that people may turn to deviance when they experience strain. Strain results when a culture teaches people the value of material success and society fails to provide enough legitimate opportunities for everyone to succeed.